Executive Summary: Key Legal and Evidentiary Issues

• John Doe, a former RBC Dominion Securities employee, has been diagnosed with bipolar affective disorder since March 2013 and has filed four tax appeals that have not moved forward for more than ten years due to his mental health condition.

• Psychiatric testimony from Dr. Rana confirmed that John Doe is chronically ill, cannot function normally despite taking medication, and has been involuntarily hospitalized multiple times under British Columbia's Mental Health Act.

• The Tax Court of Canada exercised its implied jurisdiction by necessary implication to determine whether a self-represented taxpayer qualifies as a person under a legal disability pursuant to the Tax Court of Canada Rules (General Procedure).

• Applying British Columbia's legal framework, the Court assessed whether John Doe has a "disorder of the mind that requires treatment and seriously impairs the person's ability to react appropriately to the person's environment or to associate with others."

• Efforts to obtain a formal competency assessment through the Public Guardian and Trustee of British Columbia were unsuccessful, prompting the Court to subpoena Dr. Rana to testify directly.

• The Court ultimately concluded that John Doe is under a legal disability and must be represented by counsel to continue his appeals.

Background and the appellant's tax disputes

John Doe worked for RBC Dominion Securities in Vancouver, British Columbia, until July 9, 2015. His tax troubles began when the Minister of National Revenue reassessed his 2005 and 2006 taxation years on June 8, 2009, disallowing significant business and employment expenses. For the 2005 taxation year, the Minister disallowed business expenses of $69,600.00 and employment expenses of $281,413.78; for 2006, business expenses of $75,875.48 and employment expenses of $273,011.57 were disallowed. On August 28, 2009, after John Doe filed a Notice of Objection, the Minister reassessed his 2005 and 2006 taxation years to allow additional employment expenses totaling $125,005.10. The Minister further assessed John Doe's 2009, 2010, and 2011 taxation years pursuant to subsection 152(7) of the Income Tax Act on the basis that he had not filed income tax returns, resulting in assessed federal and provincial taxes, penalties, and arrears of $124,850.55 for 2009, $117,759.90 for 2010, and $112,107.35 for 2011. Between 2013 and 2019, John Doe filed four separate Notices of Appeal covering taxation years 2005 and 2006; 2009, 2010, and 2011; 2014; and 2015 and 2016. The Notices of Appeal for the 2014, 2015, and 2016 taxation years did not provide any details on the issues in dispute or the facts that John Doe intended to rely on, and the Crown filed motions to quash or seek particulars in response.

A pattern of adjournments and growing judicial concern

Since 2016, the Court repeatedly adjourned the hearing of John Doe's appeals as well as the hearing of motions in relation to his appeals due to medical reasons. John Doe's psychiatrist, Dr. Babra Rana of the Burnaby Mental Health and Substance Use Services Section of the Burnaby Hospital, submitted numerous letters explaining that John Doe suffered from bipolar affective disorder, had been hospitalized multiple times, and was not well enough to attend hearings. In a June 28, 2016 letter, Ms. Isley, writing on behalf of Dr. Rana, indicated that John Doe had "not had any reasonable period of time when he was well" since 2012 and was "at risk of possible self-harm." By January 13, 2017, Dr. Rana stated that John Doe's "thought processing is slowed and disorganized" and she could not "advise as to how long before his condition improves, or if it will improve." Over the years, the Court observed that when John Doe did appear at hearings, his participation was minimal and, at times, he was barely responsive. In recent years, letters sent by the Court to John Doe were returned unclaimed, and he did not reply to the Court's e-mails. During the May 9, 2022 status hearing, John Doe appeared generally unable to understand or participate in the court proceedings and remained seated in the same position from approximately 9:30 a.m. until 1:30 p.m.

The Court's efforts to obtain a medical opinion

Recognizing that the appeals had not moved forward for more than ten years and now must for the good administration of justice, the Court identified three options in an order issued on May 31, 2023: ordering John Doe to provide a medical report himself, appointing a lawyer as an amicus curiae, or ordering counsel for the Crown to notify the Public Guardian and Trustee of British Columbia (PGT). The Court concluded that the first option would not be fair to John Doe for numerous reasons, including his medical condition. As for the second option, the Court concluded that appointing an amicus curiae could be done only in rare and exceptional circumstances and only if certain conditions were met, including having considered the availability of alternatives. It therefore directed counsel for the Crown to serve the PGT with a copy of the order. After completing its review, on January 22, 2024, the PGT wrote to counsel that it had determined it could not be of assistance to John Doe and would not be taking any further steps. With this avenue closed, the Court suggested to counsel for the Crown to subpoena Dr. Rana and have her testify at a hearing, and a hearing was scheduled for June 9, 2025.

Dr. Rana's testimony on bipolar affective disorder and John Doe's condition

At the June 9, 2025 hearing, Dr. Rana — a Fellow of the Royal College of Physicians and Surgeons of Canada since 1993 and John Doe's treating psychiatrist since March 2013 — provided extensive testimony. She described bipolar affective disorder as a condition involving episodes of mood instability, which can be described as the "manic state" and the "depressive state." She explained that during manic episodes, individuals display grandiose thinking, racing thoughts, excessive and unrealistic planning, and impulsive behaviours such as irresponsible spending and excessive gambling. During depressive episodes, individuals experience extremely low mood, suicidal thoughts, excessive sleep or insomnia, poor concentration, memory difficulties, and social withdrawal. She testified that John Doe is "chronically ill" and "cannot function normally despite taking medication." He had been involuntarily admitted to hospital on multiple occasions under certificates — in 2012, in February 2013, in August 2013, twice in May 2014, in December 2015, and in January 2020. On one occasion, John Doe jumped from a balcony because he believed he could fly, which Dr. Rana stated was a psychotic event. A cognitive assessment performed in 2020 yielded a score of 22 out of 30, indicating mild cognitive impairment. A functional assessment conducted by an occupational therapist that same year revealed that John Doe's home was extremely cluttered and dirty, with indications of hoarding behaviour. Dr. Rana further noted that John Doe lacks motivation, is socially withdrawn, does not get engaged in any sort of activities, writes books on finances that make no sense, and is unable to manage basic self-care, such as personal hygiene. She emphasized the significant deterioration she has observed in his mental state, noting the contrast between his previous role as a vice president at a bank and his current condition. She stated that she does not think his prognosis for the future is good. Dr. Rana's certificate of extended leave for John Doe lapsed in 2022 and was not renewed, but she testified that he still meets the criteria under the Mental Health Act — he is a person with a disorder of the mind that requires treatment and that seriously impairs his ability to react appropriately to his environment or to associate with others. John Doe is currently on a daily witnessed medication regimen, meaning a pharmacy staff member visits his residence each day to administer the medication and confirm that it has been swallowed.

The legal framework for determining legal disability

The Court applied British Columbia's legal framework to determine whether John Doe was under a legal disability for the purposes of the Tax Court of Canada Rules (General Procedure). Under section 29.1 and subsections 30(1) and 30(3) of those Rules, a party under a legal disability must be represented by counsel. Drawing on Rule 20-2 of the Supreme Court Civil Rules of British Columbia, section 29 of the Interpretation Act, and section 1 of the Mental Health Act, the Court adopted the definition that a person under a legal disability is one who has "a disorder of the mind that requires treatment and seriously impairs the person's ability to react appropriately to the person's environment or to associate with others." The Court also affirmed its implied jurisdiction by necessary implication to make this determination, citing Canada v Dow Chemical Canada ULC, 2022 FCA 70. The Crown submitted a multi-factor analysis framework drawing on the Wirtanen case and Ontario Court of Appeal jurisprudence, including whether the person can conduct litigation, understand legal advice, instruct counsel, appreciate the consequences of proceedings, and distinguish between relevant and irrelevant issues.

The ruling and its outcome

After weighing all the evidence — including Dr. Rana's psychiatric testimony, the Court's own observations of John Doe's behaviour at hearings over the years, and John Doe's own testimony — Justice Sylvain Ouimet concluded that John Doe is a person who has a disorder of the mind that requires treatment and seriously impairs his ability to react appropriately to his environment and to associate with others. The Court further concluded that John Doe is significantly impaired in his ability to conduct his affairs and that he does not have the mental capacity to commence a proceeding. Accordingly, by order signed at Ottawa, Canada, on January 22, 2026, the Court declared John Doe to be a party under a legal disability for the purposes of the Tax Court of Canada Rules (General Procedure) and ordered that, pursuant to section 29.1 and subsections 30(1) and 30(3) of those Rules, John Doe must be represented by counsel for the purposes of his appeals. No monetary award was at issue in this procedural order; the underlying tax appeals — involving disallowed expenses and assessed taxes, penalties, and arrears across multiple taxation years — remain to be determined on the merits once counsel is retained on John Doe's behalf.